“How Transfer-On-Death Accounts Can Fit Into Your Estate Planning”

It’s imperative to create an Estate Plan before it’s too late. This is the only way to ensure that the state you live in honors your wishes upon your demise. Otherwise, your wishes are unknown to the state, and they will instead follow state laws that dictate how your assets are to be distributed.

There are certainly some financial accounts you can take care of now, by created a Transfer-on-Death account. For example, if you and your spouse own a joint bank account and your spouse dies, you become the sole owner, so those assets transfer to you upon their death. However, this comes with certain caveats.

“Because TOD accounts are still part of the decedent’s estate (although not the probate estate that the Last Will establishes), they may be subject to income, estate and/or inheritance tax. TOD accounts are also not out of reach for the decedent’s creditors or other relatives,” Kiplinger explains in the below linked article. This is why it’s best to be informed as to the steps you’re taking, who they can help or harm, and how they will affect your loved ones left behind. To be best informed, you should seek the advice of an attorney trained in this field.

Danna & Associates, PC is a law firm that has specialized in Estate Planning & Elder Law since 1994. Over 2 decades of experience has given us specific and extensive knowledge in the creation of an Estate Plan perfect for you. To get started, call 718.273.0300 today for a free consultation!

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